My, my – strange how all of Labour’s fake economists didn’t work this one out
Published:
November 27, 2011 at 1:25pm
In The Sunday Times today:
Muscat’s energy proposal may not survive rating test
A Labour Party proposal to slash electricity bills by reducing the investment capital recouped from consumers may be severely compromised unless Enemalta downsizes its new projects, according to a major credit rating agency.
Standard and Poor’s said that if any reduction in tariffs was not compensated by measures on the investment side, the ratings agency would have to reassess the likelihood of exceptional support.
If this happens, Enemalta’s credit rating may worsen, leading banks to breathe down the corporation’s neck.
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http://www.timesofmalta.com/articles/view/20111127/local/Muscat-s-energy-proposal-may-not-survive-rating-test.395745
Expect a major outcry at Standard and Poors’ indhil barrani.
Told you so!
But someone should look at the discount rate used by Sargas in its financial feasibility, and have it compared with Enemalta’s. I suspect Enemalta’s rate is private information, but if not, then can someone publish both?
What worries me is Joseph’s unholy harping on the adjectives used when he mentions his projected cut in utilities’ tariffs. ‘ Realistic ‘ and ‘ Sustainable ‘ are invariably appended to his pledge in such a way that it makes me doubly wary of strings attached to his far-fetched wish.
I smell a rat the size of Anglu’s elephant.